Rebalancing a Divided China

Conventional wisdom says that China's poor save too much—improving the social safety net would encourage them to hit the shops and rev the consumption engine. The facts disagree.

A 2011 survey from China's South Western University of Finance and Economics found that 55% of China's households had little or no savings for the year. That busts the myth of industrious farmers and migrant workers saving to pay for education, health care and pensions.